The Battle To Control Religare

After an 18-month struggle, the Burman family's open offer for Religare has concluded and Rashmi Saluja is out of the way. The family may now need to gather funds to strengthen the various businesses under the Religare fold.

The problem of delay is not limited to takeover cases alone. From mergers to insolvency, litigations continue to make a mockery of law.

Religare Enterprises' independent directors have requested the company secretary to inform authorities of Rashmi Saluja's termination as chairperson after shareholders rejected her new term. They will temporarily take on her duties and seek a successor in line with regulatory requirements.

Mint reported on 4 February that around a third of the financial services company's investors might be voting against Saluja’s reappointment as director in the lead up to the company’s AGM. This drastically reduces her chances of continuing at the helm of the company.

The lawsuit, perhaps one of the the first of its kind, seeks to block the annual general meeting on 7 February at which shareholders will vote on Saluja continuing as Religare chairperson.

Religare Enterprises' independent directors are unhappy with the company's rapid announcement of Danny Gaekwad's late bid. They argue that the company secretary acted improperly, potentially misleading shareholders during the open offer process, and called for more transparency.

Hours after a Bangkok-based minority shareholder approached the Delhi High Court to halt the Burman family's move to acquire a larger stake in the financial services company, India's markets regular returned a US-based businessman's open offer for Religare Enterprises.

As the Burman family's open offer for Religare looms, a competing bid from Digvijay Gaekwad adds complexity to the situation. Experts suggest that Gaekwad's proposal may face significant hurdles, raising doubts about its credibility.

The Baroda-born American real estate and hospitality entrepreneur has substantial political connections in the US, and recently endorsed Donald Trump in his campaign to become US president.

An investor, Vijayant Mishra, argued in the petition that a takeover of Religare by the Burman family will concentrate the ownership of the company in the hands of a few, which is against the interests of minority shareholders.